I love shopping. I love traveling. I hate going to the hospital. I sometimes like going to the bank (only if it involves the depositing a large check). On the surface, it may seem that there’s no common thread about each of these experiences, however, there actually is a lot in common!
Each of these industries (retail, transportation, healthcare, banking) is becoming more passionate about truly delivering good customer experience and building customer loyalty. Why? Research has established that satisfied customers spend more money “now” and, in the longer term, become more loyal. For example, according to a J.D. Power survey, a delighted traveler is likely to spend 45% more money at the airport than someone who is disappointed with their experience.
Okay, sold! Let’s start delivering “good” experience and start counting the money…right? Not exactly. Unfortunately, it’s not quite that simple.
First of all, what exactly is “good” experience? The answers will vary greatly depending on the industry vertical and brands within a vertical. Hence, one of the major challenges is actually defining “good” experience.
While there are certainly unique attributes to “good” experience in different industries, there is a common theme emerging: the synchronization of physical and digital experience. For example, research by Cisco’s Internet Business Solutions Group, revealed 93% of products sold in the United States are still bought in brick-and-mortar locations. In addition, over 50% of all consumers access (or would like to access) to digital content while shopping in a store, either through digital touch-screens or their own smartphones/tablets. This research reveals that more and more consumers are relying on real-time digital content to make purchasing decisions. In essence, consumers are becoming “informed buyers” during the shopping experience.
Unfortunately, with respect to customer experience, in many companies today the physical and digital worlds still sit across a great divide. Often, these two functions are housed in different organizations and are loosely coupled with respect to operations and culture. While we’ve made significant progress, digital experience is often an after-thought that peacefully co-exists with physical experience.
But, that’s not going to work any more. Consumers are expecting more, and they vote with their wallets. So, start truly synchronizing your digital and physical experiences…or else!
There are indeed a number of challenges in making smart stores, what do you think is most difficult in actually accomplishing this?
Cisco retail industry marketing has grown from the initial Twitter feed to now include a comprehensive portfolio of social media properties, including Facebook, LinkedIn, Youtube and blog.
I am excited to be presenting with Parvez Patel, senior director of E-marketing at Grainger, on the B2B Social Media Track this Thursday, June 6th from 1:45pm to 2:30pm CT on the topic “Social marketing for b2b: It’s not just for b2c anymore.”
In this session, Parvez and I will present and take questions on the following:
Last week, we sat down with Bart McGlothin and Christian Janoff from Cisco’s security team to discuss PCI Security for Retail to better understand “What is PCI Compliance?” and “How does that affect Retailers?”
As a quick re-cap: PCI Compliance is a 12-step process to secure credit cards. Any retailer that accepts credit card payments must be “PCI Compliant” (i.e., follow those 12 steps). Compliance is enforced by the Retailer’s acquiring bank (the financial institution that processes the credit card payments for the Retailer).
Q. So, we know that Retailers need to be PCI Compliant. How can Cisco help?
A. Cisco has a PCI design and implementation guide for merchants to use. It really stands alone in the industry because it provides holistic guidance in three key ways:
Shoes? Check. Computer gear? Check. Clothes? Flatware? Hot tubs with built-in TVs? Check, check, and check. There’s almost nothing these days that we don’t buy online. But there is one area where the local brick-and-mortar store still reigns supreme: grocery shopping.
When it’s time to stock the fridge, the vast majority of us still do it the old fashioned way. We trek out to the store, walk up and down the aisles, and fill up physical rather than virtual shopping carts. But just maybe, that’s about to change. A number of retailers are experimenting with online groceries, and a growing number of consumers are ready to buy.
These days, the generation of data has become almost as constant as breathing. With every click or swipe, today’s mobile, hyperconnected consumers exhale an ever-expanding trail of digital details, revealing troves of information about their wants, needs, interests, well-being, and aspirations.
All of that data offers great promise for retailers looking to know their customers in deep, new ways in order to provide carefully targeted products and services. But it is also a source of headaches. Those same retailers are wrestling with a complex new realm of Big Data analytics, where a deluge of information from new sources like video, mobile, and social media threatens to swamp their capacity for processing. That is, if they can properly access those new data streams in the first place.